Hanoi:South Africa has significantly surpassed its investment goals, with industrial investment reaching over R31 billion, far exceeding the R10 billion target, and local procurement totaling R86 billion against a R50 billion target.
According to South African Government News Agency, Trade, Industry and Competition Minister Parks Tau presented the department's Annual Report for the 2025/2026 financial year to the Portfolio Committee on Trade, Industry and Competition. The report highlighted South Africa's strong performance against its investment and export targets, while also identifying operational bottlenecks and audit challenges.
During the reporting period, global exports reached R142 billion against a R120 billion target, with continental exports at R146 billion and exports from small, medium, and micro enterprises (SMMEs) at R764 billion. Minister Tau emphasized the shift from crisis management to a focused industrial development strategy, aiming to measure tangible outcomes for the South African economy. This strategy includes a focus on Special Economic Zones and industry-specific Industrial Parks.
Tau outlined efforts to diversify markets through trade preferences with the European Union (EU), the Southern African Development Community (SADC), BRICS Plus, the United States of America (USA), the United Kingdom (UK), and the rest of the continent. The department aims to promote exports in manufacturing, particularly among SMMEs and black-owned enterprises, despite global uncertainties.
The report also noted sectoral and operational challenges, with manufacturing growth slightly below the 0.5% target, at 0.4%. Progress on Industrial Parks has been delayed due to funding constraints, with only 10 out of 45 targeted parks receiving funding. Tau cited logistics challenges as a factor in the reduction of imports of rail and transport components, requiring concessions to maintain operations.
Ongoing negotiations with the UK regarding electric vehicles are addressing concerns about domestic capacity and future investment interest. While progress is being made in sectors like automotive, other industries face challenges. The poultry sector is dealing with increased US demand and quota issues, while the steel sector faces market access constraints due to increased tariffs matching those of the EU.
The department's expenditure focused on high-value categories, including R9.1 billion for industrial incentives, with R5 billion successfully disbursed. Other expenditures included R1.3 billion for the Social Employment Fund, R41 million in membership fees, and various transfers to non-profit organizations. The department noted challenges with unqualified audits and the need for improved coordination with other government departments to align programs.
